There are times when we all need extra money to either pay off bills or to make a purchase that is just too much to pull out of pocket. In these cases it becomes necessary to take out a loan. There is nothing wrong with taking out loans as long as you are smart about it. You have to have a plan on how you are going to pay the loan back.
First do your homework. Find out how much interest you will be paying on the loan. Try several different lenders so you can get the lowest rate possible. A low rate means that you have less to pay back. This is just being a smart consumer.
Next look at the monthly payment. Make sure you have enough extra money each month to make the payment. If you don't have the extra money to make the payments then you will end up defaulting on the loan. This will mess your credit up and make it just about impossible to get another loan in the future.
Always make sure you make your payment on time. If possible try to make you payments at least a week before it is due. If you do this you will show that you are responsible and every time you make a payment on time it puts a good mark on your credit record. It will also keep you from getting hit with late fees.
If you can try to pay more than your payment. This will pay your loan off quicker and you will be charged less in interest. If possible try to find a little side work and just put the money you make there on the loan. If you just pay a little more than the payment every month you will be surprise how fast this loan will be paid off.
If you pay your bills online you can also have your loan paid automatically. All you have to do is sign up to auto pay and your payment will be pulled from your checking account every month and you will not have to worry about writing a check and taking it to the lender. Just always remember to set your date to pay at least 4 business days before it is due. It will take a couple of days for the payment to make it to the lender.
If you are going to take out a loan try to stick with just lenders who break your payment down in installments of at least six to twelve months. Some payday loan companies that demand the payment in full will have you pay three times the loan in interest payments before you can get the loan paid off. If you have no other choice they can be helpful but just be careful when dealing with these companies.
With just a little planning you can secure a loan and pay it off with no problem. Just remember to have a plan when looking to loans. Make sure you don't borrow too much and that you have enough to make the payments. If everybody does their part then everyone wins. The lender makes money and you will get the bill paid or the purchase that you wanted made. |
